2019.03.2115:39:00UTC+00Gold Futures Settle At 1-week High

Gold prices retreated after climbing to a three-week high in early trades on Thursday, but still ended the session on a positive note amid uncertainty about Brexit and U.S.-China trade talks.

The Federal Reserve's dovish policy stance weighed on the dollar, but fairly strong economic data pulled the currency out of lower levels and this limited the yellow metal's gains.

The dollar index rose to 96.63 after opening at 95.91 and despite retreating slightly, was still up more than 0.5%, at 96.52.

Gold futures for April ended up $5.60, or 0.4%, at $1,307.30 an ounce.

In economic news, a report released by the Labor Department on Thursday showed first-time claims for U.S. unemployment benefits fell by more than expected in the week ended March 16th.

The report said initial jobless claims dropped to 221,000, a decrease of 9,000 from the previous week's revised level of 230,000.

Economists had expected jobless claims to dip to 225,000 from the 229,000 originally reported for the previous week.

A report from the Federal Reserve Bank of Philadelphia showed its index of manufacturing activity rebounded by much more than anticipated in March, after unexpected contraction in the previous month.

The Philly Fed said its index for current manufacturing activity in the region jumped to a positive 13.7 in March from a negative 4.1 in February, with a positive reading indicating growth. Economists had expected the index to rise to a positive 4.5.

The Conference Board's report showed its reading on leading U.S. economic indicators rose for the first time in five months in February, reflecting accommodative financial conditions and a rebound in stock prices.

The Conference Board said its leading economic index edged up by 0.2% in February after revised data showed no change in January. Economists had expected the index to inch up by 0.1% compared to the 0.1% dip originally reported for the previous month.

The report said the coincident economic index rose by 0.2% in February following a 0.1% uptick in January, while the lagging economic index was unchanged after climbing by 0.6% in the previous month.